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Pastimes : Discussion Thread -- Ignore unavailable to you. Want to Upgrade?


To: DMaA who wrote (1656)8/12/2008 6:42:25 PM
From: c.hinton  Read Replies (1) | Respond to of 3816
 
The fed increases and decreases interest rates, right......?

if all you do in decrease rates to maintain "good times"you end up giving money away at 0 or less percent real rates...like now.

that is not capitalism thats wishfull thinking.

the fed has lowered interest rates repeatedly over a year

why does it cost more borrow from a bank?

why has the stock market not gone up?

pushing on a string....market psycology......

also.....

you have x number of dollars.....society is optimistic ,people wheel and deal,buy and sell.

the dollars wizz around the economy lifting all boats.

people become pessimistic and put money at rest in the bank in short term accounts.

money is no longer wizzing...all boats sink.

the fed and gov ,short of brainwashing the public cant do anything.

pushing on a string......

so they try brain washing.

ps i get the impression some here may have remained fully invested since 14000 assuming that interest cuts rate will solve all problems..

if you are not fully invested but once were.....you must have reaized deep down that the great and powerfull fed is not so great and powerfull as to be able sway market psycology every time.